Aaron is a single taxpayer reporting $90,000 of gross income. In addition, Aaron receives $5,000 of tax-exempt interest. The Stadard deduction is $5,450 and the personal exemption is $3,500.
Required: Compute the following:
a. Aaron's taxable income is:
b. Aaron's tax liability is:
C. Aaron's marginal tax rate is:
d. Aaron's average tax rate is:
e. Aaron's effective tax rate is: